Strategic procurement is a plan that is crafted with the sole objective of achieving goals that may be quite far off in the distance, such as five or ten years into the future. A strategic procurement strategy not only helps come up with short-term solutions but rather involves coming up with strategies that will serve the long-term purpose. In any organization, strategic procurement plans are created by top-level management and the same applies to firms in the chemical industry. A strategic procurement plan also influences the tactical procurement plans that are developed and implemented. It is a comprehensive plan that takes into account the targeted objectives and needs of the procurement department of the firm. Strategic procurement is one of the most significant tools that helps in maximizing the value contribution of any company. It serves as a guide for any organization and should be updated regularly at the interval of a year to ensure its alignment with the overall business strategy.
In this blog, the procurement experts at SpendEdge explain some of the strategies for developing a successful strategic procurement plan for the chemical industry.
Strategic Procurement in the Chemical Industry
Work on technical aspects
Companies in the chemical industry can achieve substantial savings by modifying the specification or grade of raw materials through a strategic procurement plan. But it is not an easy task as it affects the final quality of the product. In the chemical industry, one of the major cost incurred during procurement is the logistics cost. Analyzing the technical factors can help the chemical industry to save on logistics cost by changing the state and form of the quality of materials. God grasp over chemical compositions gives a considerable advantage in terms of achieving strategic procurement, as certain costs can be dealt with by pre-mixing and pre-processing chemicals at supplier’s facilities.
Continue reading to know more or request a free proposal below.